BCM ON PERSONAL FINANCE
Funding retirement requires years of preparation and many Americans are not prepared. Part of the problem is not fully understanding the real cost of retirement, particularly in regions with a high cost of living such as the San Francisco Bay Area.
Many people experience "loss aversion" or the cognitive tendency to prefer not losing over gaining. While the fear of loss is understandable, it can lead to irrational financial decisions.
Everyone has heard the term "time is money." When it comes to investing, time can also work for or against you. Understanding the relationships between time, money, and growth is key to successful investing.
Successful investing is really quite simple, it boils down to buy low and sell high. But simple is not easy and many people end up buying high and selling low instead. Behavioral Finance seeks to explain how and why this happens.
Financial services professionals like wealth managers, investment consultants, and financial advisors may all look the same, but can be very different. It is important for individual investors to understand the differences and why they matter.
Roth IRAs have been gaining popularity but they may not provide the financial benefits expected. Whether to favor Roth or Traditional IRAs really boils down to personal needs and goals, here are some points to consider.